Partners at PricewaterhouseCoopers took home less pay last year, despite the
firm posting a 10pc rise in overall profits.

The average “profit” made by each of the accountancy group’s 872 partners rose by 4.6pc to £798,000 during the year ending June 30 as pre-tax profits hit £736m.

However, stripping out one-off costs, including annuity payments to retired partners, the “actual profits distributable” to partners fell to an average £679,000.

Ian Powell, PwC’s chairman, took home £3.4m – the same as last year. His pay is set by senior executives at the firm.

PwC saw revenues increase 7pc to £2.46bn during the period. The group’s assurance practice grew revenues by 6pc to £963m on the back of audit wins including Aviva, Dubai World, Genel Energy and Yule Catto.

Elsewhere, revenues at PwC’s consulting business grew 13pc to £438m, while its deals practice reported 8pc growth to £561m, and its tax division grew 2pc to £659m.

PwC said it recruited 2,300 workers last year, including 1,200 graduates and 100 school-leavers. The firm also took on 61 new partners.

Reflecting on the wider economic outlook, Mr Powell said: “While the short- term economic environment remains tough, I am confident in the UK’s longer- term prospects. We will continue to invest to ensure we are able to support the economic recovery when it comes and plan to maintain our record recruitment levels in the coming year.

“I am confident we will continue to add great value with our strong commitment to quality and doing the right thing for our people, our clients and our communities.”

PwC, along with the three other “big four” accountancy firms, is currently under investigation by the Competition Commission, which is seeking to find out whether the quartet’s dominance needs to be addressed by regulators.

Financial watchdogs claim the four have failed to prove they can self-regulate, and customers are suffering because the market is uncompetitive. They also believe barriers to entry for new and smaller competitors are too high.

The “big four” have always denied this. Last year, Mr Powell said that PwC, Ernst & Young, Deloitte and KPMG dominated because they had invested the most in recent years.